A to z of asset investigations
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Transcript of A to z of asset investigations
Asset InvestigationsAsset InvestigationsA to Z A to Z
By
Jim Cronin, MPA, CFE Seattle Insurance and Legal Investigations
Presented to:
Washington State Paralegal Association
June 7, 2014
Opening Opening • Introductions
•Handouts
•Sample Reports
•Limitations
OVERVIEWOVERVIEW•Audience Assessment
•Terminology
•Reasons For Conducting an Asset Investigation
•When should you conduct an Asset Investigation?
BROAD OVERVIEWBROAD OVERVIEWOF STEPSOF STEPS
• Determine the PURPOSE of your investigation.
• Determine the SCOPE of your investigation.
• IDENTIFY the DEBTOR
• ADDRESS HISTORY of DEBTOR(S)
• Find the ASSETS
• REALITY CHECK TIME
• Find the ENCUMBRANCES
• Make a DETERMINATION
Logic Path
DETERMINE THE SCOPE & PURPOSEDETERMINE THE SCOPE & PURPOSEOF YOUR INVESTIGATIONOF YOUR INVESTIGATION
Logic PathLogic Path•What do I know about this incident?
•What do I suspect?
•What issues am I trying to resolve?
•What information would help me resolve those issues?
•Where can I get that information?
CLOSER VIEW OF OVERALL CLOSER VIEW OF OVERALL PROCESSPROCESS
• IDENTIFY THE DEBTOR• Individual?
– Current Identity?
– Previous Names
– Nicknames
– Trade Names
•Marital Community?
• Sole Proprietorship?
•Corporation(s)– Subsidiary Corporations?
CLOSER VIEW OF CLOSER VIEW OF OVERALL PROCESSOVERALL PROCESS
•What kind of Debtor are you dealing with?
Types of DebtorsTypes of Debtors
DEVELOP AN ADDRESS HISTORYDEVELOP AN ADDRESS HISTORY
• Importance of Addresses:
•Records are filed by counties!
•Some cities are in two counties!
•You need to know where to look!
SEARCH FOR ASSETSSEARCH FOR ASSETS
•Definition of an Asset:
•Something of value that a debtor owns that could be attached/seized to satisfy a debt.
EXAMPLES OF ASSETS:EXAMPLES OF ASSETS:
• Real Property
• Businesses
• Vehicles
• Vessels
• Employment
• Pending civil suit settlements
• Inheritences
• Aircraft
• Intellectual Property
REALITY CHECK TIMEREALITY CHECK TIME
• If there are no assets, encumbrances are a moot point.
SEARCH FOR ENCUMBRANCESSEARCH FOR ENCUMBRANCES
• Definition of Encumbrance:
•Impediment on property that lowers its value or makes it more difficult to gain title to.
EXAMPLES OF ENCUMBRANCESEXAMPLES OF ENCUMBRANCES
• Deeds of Trust (Mortgages)
• Bankruptcies
• Tax Liens• Federal
• State
• County
• Judgments
• Unpaid Court Fines
DETERMINE THE NET ATTACHABLE DETERMINE THE NET ATTACHABLE EQUITYEQUITY
•Current Market Value
•MINUS Value of Superior Encumbrances
•= Net Attachable Equity
MAKE DETERMINATION OF FEASIBILITYMAKE DETERMINATION OF FEASIBILITYOF RECOVERYOF RECOVERY
• Homeowner’s Exemption - $125,000
• Likelihood that Debtor will Abscond/Destroy Assets
• Number of other entities with Superior Claims also seeking to recover from Debtor
• Cost of pursuit of assets versus value available
• Timing of recovery efforts
•Late to the Party??
DETAILED STEPS IN SEARCHINGDETAILED STEPS IN SEARCHINGFOR ASSETSFOR ASSETS
• Fully Identify the Debtor
• Start with Source Documents
–Police Report etc
•Use Subject ID Form
• JIS
– Full Legal Name
–Date of Birth
–Physical Description
–Address on file with Courts
DETAILED STEPS IN SEARCHINGDETAILED STEPS IN SEARCHINGFOR ASSETSFOR ASSETS
Fully Identify the Debtor (Continued)
TLO and Accurint:
Premier investigative databases.
Surnameof record
First Name of record
Middle Name/Initial
Suffix Social SecurityNumber Associated
with this Name
Date of Birth/Age
Notes
DETAILED STEPS IN SEARCHINGDETAILED STEPS IN SEARCHINGFOR ASSETSFOR ASSETS
Address City, State, Zip Code
County Dates Reported
Notes
• Develop and Address History• TLO + Accurint
• + Other Sources
WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE
• REAL PROPERTY:• TLO/Accurint
• Recorder’s Offices
• Assessor’s Offices
• VEHICLES:• IVIPS
WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)
• BUSINESSES:• WA Department of Licensing
• WA Department of Revenue
• WA Secretary of State
UBI BusinessName
TradeName(s)
Bus.Type
DateOpened
(Descending)
Date Closed
GoverningPersons
Address RegisteredAgent
Notes
WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)
• Employment:• Accurint – People at Work
• TLO – Comprehensive Report
• Professional Licensing – WA Department of Licensing
• News Articles – NewsLibrary
WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)
• Pending Civil Suit Settlements• WA Administrator of Courts
• SCOMIS
• Newspapers
WHERE TO SEARCH BY ASSET TYPEWHERE TO SEARCH BY ASSET TYPE(Continued)(Continued)
• Insurance/Bonding• WA Labor & Industries
• WA Department of Licensing
WHERE TO SEARCH FOR WHERE TO SEARCH FOR ENCUMBRANCESENCUMBRANCES
• TLO/Accurint:• Bankruptcies
• Tax Liens
• Judgments
• Notices of Default
• Recorded Documents:• Deeds of Trust
• Tax Liens
• Liens on Property
• Lis Pendens
SEARCHING THE RECORDERSEARCHING THE RECORDERAND ASSESSOR’S OFFICESAND ASSESSOR’S OFFICES
• Files are intertwined
• Assessor:• By address
• By parcel number
• By name (at Assessor’s Office)
• Recorder:• By name
• By parcel number
Searching the Searching the Recorder’s OfficeRecorder’s Office
• Online
• At Recorder’s Office
• King County : At Archives
• Limitations:• Images of all documents are not available online.
• e.g.: Deeds of Trust in King County
Searching the Searching the Recorder’s OfficeRecorder’s Office
(continued)(continued)
• Some types of documents relevant to asset investigations:• Deeds of Trust
• Reconveyances
• Liens
• Excise Tax Affidavits
• Marriage Certificates
• Lis Pendens
• Warranty Deeds
Searching the Searching the Recorder’s OfficeRecorder’s Office
(continued)(continued)
• Many types of documents are recorded!
• The Recorder does not verify documents’ authenticity!
• Not everything that is recorded is real!
• Pay attention to “When recorded, return this document to _____”
Searching the Searching the Recorder’s OfficeRecorder’s Office
(continued)(continued)• Search Tips:
• Search by all variants of names
• “No Record Found” is a result!
• “If you see it, print it.”
• King County does not post Deeds of Trust –– TLO & Accurint have details of Deeds of Trust online
• Importance of hyperlinked documents (“Related Documents”)
SEARCHING FEDERAL COURTSSEARCHING FEDERAL COURTS
• PACER:• Bankruptcy Filings
– Hyperlinked to actual documents/schedules
– Archived within several years
• Federal Civil & Criminal Cases Also
SEARCHING WA COURTSSEARCHING WA COURTS
• Start with AOC Site:
SEARCHING WA COURTSSEARCHING WA COURTS
• SCOMIS:• County by County
– Civil
– Criminal
– Juvenile
– Domestic
– Probate
• CourtTrax, CourtLink & Others…
SEARCHING WA COURTSSEARCHING WA COURTS
• JIS• Non-Civil Cases Statewide
• District/Municipal Civil Cases
• ACORDS• Apellate
• State Supreme Court
ASSET & ENCUMBRANCE RELATEDASSET & ENCUMBRANCE RELATEDWA COURT RECORDSWA COURT RECORDS
• Garnishments
• Judgments
• Child Support Obligations
• Unpaid Court Fines
• Civil Cases Pending Awards
• Probate
WA VEHICLES & VESSELS -IVIPSWA VEHICLES & VESSELS -IVIPS
• Attention to detail is critical!
• Log EVERY search!
• Check my website for Excel Spreadsheet
• Accounts are Subject to Audit!
• Understand Syntax: LAST,FIRST
• Can search by:• Name
• Plate – no spaces!
• VIN/HIN
WA UCC FILINGSWA UCC FILINGS
• Secured Party
• Debtor Party
• Collateral
• Effective Date
• Lapse Date
OTHER SEARCHESOTHER SEARCHES
• News:• NewsLibrary
– Nationwide
– Full Text
– Boolean Operators/ Advanced Search Options
– National/Regional/Local News
– 5000+ sources
• Social Media
• Google Searches
SEARCH TIPS:SEARCH TIPS:
• Syntax varies widely!
• Search until you get a result!
• Use Truncation
• “No record found” is a result
• If you see it, print it!
• Keep track of search terms used• Matrix
ASSET DEFENSE STRATEGIESASSET DEFENSE STRATEGIES
• Real property owned in name of trusts
• Bleeding off equity (second mortgages)
• Fake bankruptcies
• Real property/vehicles leased versus owned
• Real property listed in wife’s maiden name
Questions??